Which Types of Debt Can Be Discharged Under Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often referred to as "liquidation bankruptcy" because it involves the liquidation of non-exempt assets to pay off creditors. It is suitable for individuals with limited income and unsecured debts that they cannot afford to repay.

The following types of debts are typically well-suited for discharge under Chapter 7:

1. Credit Card Debt

2. Medical Bills

3. Personal Loans

4. Past-Due Utility Bills

5. Collection Agency Accounts

6. Payday Loans

8. Repossession Deficiencies

9. Unsecured Judgments

There are also types of debts that are typically not dischargeable which include certain tax debts, student loans, alimony, child support, and debts arising from fraud or willful misconduct.

Before deciding to file for Chapter 7 bankruptcy, it's crucial to consult with a qualified bankruptcy attorney who can assess your specific financial situation and provide guidance on the best course of action based on your individual circumstances. Get in touch with me for a free consultation.